The Role of Female Education in Economic Growth of Pakistan: A Time Series Analysis from 1990-2016

Author(s):  
Syeda Anam Hassan ◽  
Nazish Rafaz

Education is an essential factor of economic growth and a fundamental right of every person. No country can attain sustainable economic growth without substantial investment in education. Education improves technical capabilities of exploring new ideas and innovations. It improves the quality of life and leads to collective benefits to individuals and societies. In this study, we investigate the impact of female education on the economic growth of Pakistan by adopting the methodology of the simple Ordinary Least Squares regression with time spanning from 1990 to 2016. OLS regression results show that 1% increase in female education, female labour force participation, education expenditure and fertility rate causes 96% increase in GDP of Pakistan. Female education has a significant and positive impact on economic growth. Female education has a positive relationship with female labour force participation rate. The female labour force is dramatically increasing the economic growth. The policy recommendation is that government should allocate more of its budget on education and make efforts for improvement of the quality of education at different levels. The fertility rate has a negative relationship with female education and economic growth. Female education can reduce fertility rate and play a magnificent role in economic growth of Pakistan.

2020 ◽  
Vol 64 (4) ◽  
pp. 444-458
Author(s):  
Aduralere Oyelade ◽  
◽  
Onome Oghenetega ◽  
Favour Eforuoku ◽  
◽  
...  

The study investigated the impact of labour force participation rate and its implications on food security, fertility rate and economic growth in the West African Monetary Zone (WAMZ). Using data from 6 countries over the period of 1990 tо 2016 and pool autoregressive dіstrіbutеd lаg (PАRDL) bоunds tеstіng рrосеdurе was employed. The result from the study showed that female labour force participation and health expenditure per capita determine food security and male labour force participation, female labour force participation, gross capita formation, health education per capita and enrolment in secondary education are the variables that determine fertility rate, while male labour force participation, female labour force participation, health expenditure per capita and enrolment in secondary education affect GDP per capita. The study recommended that policies should be directed toward increasing female labour force participation which will compliment male labour force participation as well as increase decent and productive work opportunities for female workers which will promote GDP per capita, leading to reduction in fertility rate and promote food security among member countries. Furthermore, family-friendly policies will further encourage females to participate in the labour market. Therefore, more efforts should be made to promote female labour force participation as the entire WAMZ countries will benefit from the growth and welfare improvement that it will generate. WAMZ countries governments need build their capacity through investment in health and education in order to enhance productivity of the labour force which will lead to economic growth, reduction in fertility rate as well as promote food security. This study has contributed empirically and theoretically to the body of knowledge. The scope covered also makes the study uniquely robust and different from previous ones.


Author(s):  
Prakash Kengnal ◽  
Asha Bullappa

Background: The empirical work on fertility determinants widely discusses the role of socio-economic factors like female labour force participation rate, urban population and per capita gross national income in determining fertility rates. The India’s high fertility rate began to decline gradually after late 1950s and continued to fall since then. India achieved almost 31 per cent decline in fertility rate from 1990 to 2012. The objective was to examine the relationship between fertility rate, urbanization, female labour force participation rate and per capita gross national income for India.Methods: This study covers the sample period from 1990-2012. Moreover, the direction of causality between fertility rate, urbanization, female labour force participation rate and per capita gross national income in India using Granger Causality test within the Vector Error-Correction Model (VECM) are examined.Results: As a summary of the empirical results, we found that fertility rate, urbanization, female labour force participation rate and per capita gross national income in India are co-integrated and there is unidirectional Granger Causality between the four variables in long and short-run.Conclusions: The growth in urban population, female labour force participation rate and per capita gross national income are responsible for the decrease in fertility rate in India.


2021 ◽  
Vol 6 (3) ◽  
pp. 259-271
Author(s):  
Khai Ying Eng ◽  
Chee-Hong Law ◽  
Yiing Jia Loke

This paper examines the relationship between financial access and economic empowerment among females, i.e., female labour force participation by testing a panel data of 51 countries ranging from 2004 to 2016. The number of bank branches and automated teller machines, both in thousand square feet and a hundred thousand adults, are applied as financial access indicators. The estimation method employed is the dynamic panel system generalized method of moment estimators. The control variables in the equation are the life expectancy, gross domestic product per capita, and female education enrolment. The results showed that bank branches have more noticeable impacts than automated teller machines in affecting the female labour force participation rate, implying that bank branches' services have a more substantial influence on women empowerment than automated teller machines. Furthermore, financial access indicators show a negative association with female labour force participation, probably due to female discrimination in financial access or the income effect caused by better financial access. Another possible reason is that the development policies could have bypassed women, as indicated by previous studies. To overcome this situation, governments could improve their financial service to ensure that financial access benefits women empowerment, including exploring the microfinance and special loans for female borrowers.


Author(s):  
Han Hwa Goh ◽  
Vishalini Macharagai ◽  
Siew Bee Thai ◽  
Boon Heng Teh ◽  
Tze San Ong

Malaysia, a fast-growing developing country in Asia, has envisioned Shared Prosperity Vision 2030 to become a developed economy with high income via sustainable and inclusive economic growth by the year 2030. To accomplish this vision, female labour participation is needed as the female population constitutes almost half of Malaysia’s total population. However, female labour participation rate is way lower than Malaysia’s overall labour force participation rate.The relatively low female labour participation rate can be a barrier to Malaysia’s economic development and thus the realization of its goal of a high income nation.Therefore, this paper makes an attempt to examine empirically the long-run causal association among female labour force participation, economic growth, education, and fertility rate. The interrelationships among the variables are examined using the bounds test and Toda-Yamamoto granger non-causality methodology. The result of the study indicates a strong evidence of long-run relationship among the variables. Besides, we have found a significant inverted-U-shaped association linking the female labour force participation to the economic growth in Malaysia. The results of Granger causality tests further confirm that there is a strong evidence of bidirectional causality from education to economic growth as well as female labour participation. Besides, the results also show significant unidirectional causality from female labour force participation and fertility to economic growth.


2020 ◽  
Vol 19 (3) ◽  
pp. 303-322
Author(s):  
Harpal Sangha ◽  
Robert Riegler

Purpose This study aims to analyse whether globalisation, i.e. informational and economic globalisation, promoted or impeded female labour force participation (FLFP) in South Asia. Design/methodology/approach The KOF Globalisation Index is used alongside a fixed effect panel data Discroll–Kraay estimator to control for unobserved factors and achieve robust standard errors. The sample covers all South Asian countries for the period 1999–2015. Findings Globalisation does not advocate the “feminisation of employment”; in fact, the impact is negative. This is driven by the economic dimension of globalisation, particularly for younger women. However, this impact is mitigated by informational globalisation that affects FLFP positively, especially for women aged 35 years and older. Practical implications Without support of the right governmental policies, there is a danger of globalisation creating new obstacles for women to enter the labour market. Originality/value This paper adds to the existing literature by using the more comprehensive KOF globalisation measure to identify the overall effect of globalisation on FLFP in South Asia, being the first study to analyse the impact of informational alongside economic globalisation, and investigating whether globalisation affects the labour force participation rate of various female age cohorts differently.


2018 ◽  
Vol 4 (02) ◽  
Author(s):  
Megha Jain ◽  
Aishwarya Nagpal

Women’s employment is an imperative factor in their advancement towards economic independence yet there is relatively inadequate and mixed evidence on the relationship between economic growth and female labour force participation rates. This study examines the impact of economic growth on female workforce participation in South Asian Nations (SANs) from 2000-2015 within the outline of U-shaped hypothesis using panel data modelling. The impact of several key macro-economic variables on female labour force participation is also examined in different econometric model specifications. The effects of economic development, literacy, urbanization and different unemployment patterns on female labour force participation are found to be negative whereas Gini coefficient is found to be positive. The findings suggest that most of the SANs are still experiencing the downward portion of U-shaped (while India being close to attaining the tipping point sooner as compared to other nations) may be, due to being at the early stages of economic development. In the present scenario, policy interventions should handle a variety of issues, including reconstructing access to and significance of education and training programmes and boosting private sector development in industries and regions that would escalate job opportunities for women in developing countries.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Durmuş Çağrı Yıldırım ◽  
Hilal Akinci

PurposeIn this study, the relationship between female labour force participation rate and economic growth is investigated in middle-income countries. The study covers the period of 2001–2016 by employing a dynamic panel approach. Pooled Ordinary Least Square and Fixed Effects model estimations are calculated as a decision criterion to select proper GMM Method. The outcomes indicate that the proper estimation technique, which is a System-GMM model, evidences the U Feminisation Theory for the middle-income countries while controlling all other factors.Design/methodology/approachThe novelty of this study is that the research not only employs both difference and system generalised method of moments (GMM) estimators but also includes main explanatory variables such as education, fertility, and total labour force rate. The study provides an opportunity to review the U-shape nexus between the female labour force and economic growth while controlling education, fertility and total labour participation rate.FindingsThe estimation implies that middle-income countries support a U-shaped relationship. The fertility rate does not impact on the female labour force, and education and total labour force level have a positive influence on women's participation in the labour market.Research limitations/implicationsThis study used data that include the period of 2001–2016 for middle-income countries. So, further studies can use different periods of data or different countries.Practical implicationsThe authors emphasise the importance of economic growth for female labour force for middle-income countries. Thus, a country intending to increase female labour force should also focus on its economic growth. As the study points out, middle-income countries staying under the minimum threshold, $4698.15 (per capita), should priorities their economic improvement policies to reach their female labour force participation goal. Those countries also should be prepared for a female labour force participation declining phase until they reach the turning point income level.Social implicationsFurthermore, education is one of the critical determinants that have an impact on FLFPR. The equal opportunity for both genders to engage in education should be considered as a policy. If females do not have an equal chance to enrolment in education, it may influence the policy of increasing female labour force adversely. Fertility rate appears no more statistically significant in our study. Moreover, today, there are some countries they practise equality between genders by providing equally extended parental leave, which may be a promising policy for gender equality in the labour force and may worth a try.Originality/valueSome previous studies may suffer model mistakes due to lack of consideration the endogeneity problem and bias issue of the results as suggested by Tam (2011). Moreover, previous studies tend to choose either studying U-feminisation as excluding other variables or studying determinants of female labour force participation rate as excluding U-feminisation theory. There is not any panel data study acknowledging both concepts by using recent data to the best knowledge of the authors. Thus, the novelty of this study is that the research not only employs both difference and system generalised method of moments (GMM) estimators but also includes main explanatory variables such as education, fertility, and total labour force rate. The study provides an opportunity to review the U-shape nexus between the female labour force and economic growth while controlling education, fertility and total labour participation rate.


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